Bid Oracle

[jedijazz]

IPO Watch: Energy and Exploration Partners (ENXP) announced the pricing of its previously announced private placement offering of convertible subordinated notes due 2019.

The notes will have an aggregate principle amount of $375MM and initially carry an 8% coupon, which increases over time if the company has not conducted an IPO. Every six months after July 2015, the coupon will increase by 50bp if the company has not gone public, up to a 12% coupon at maturity.

The notes are also convertible at a discount to the IPO price at a rate that increases over time. The shares can be purchased at a 10% discount if the IPO occurs prior to December 31, 2014 and will increase to as much as 45% by 2019.

In conjunction with the convertible notes offering, ENXP will be offering a 4.5-year senior secured term loan and intends to use the proceeds from these offerings to pay the for the acquisition of oil and gas assets from TreadStone Energy Partners, to refinance and replace their outstanding senior unsecured notes and fund a portion of the 2014 and 2015 capital budget.